Energy security

Earlier this year, our country battled the El Niño phenomenon, which led to record-breaking temperatures and heat indices.

- JOE ZALDARRIAGA

Despite all the preparations, Luzon recorded an all-time high power demand, which subsequently led to supply shortfalls and—in many parts of the region—rotating power interruptions.

While Metro Manila and key economic hubs in the country were, for the most part, spared from crippling outages, the situation emphasized the urgent need to boost the country's available power supply to ensure energy security critical to supporting economic activities. It need not be underscored that for a growing economy, energy supply is a critical requirement if we are to meet economic targets.

The country's energy demand is projected to grow by around seven percent annually, driven by increasing industrial activity, urbanization, and population growth. This underscores the need for additional capacity and highlights the importance of bringing more private sector-led generation projects to fruition.

One such project hurdled a major step recently, as the Philippine Competition Commission (PCC) approved the joint liquefied natural gas (LNG) project of Meralco PowerGen Corp. (MGEN), AboitizPower Corp. (AboitizPower) and San Miguel Global Power Holdings Corp. (SMGP). This project involves an integrated facility with over 2,500 MW of generating capacity and a regasification terminal.